SORA Keeps Falling: Which Bank to Choose for Fixed Deposit?
The 3-month Singapore Overnight Rate Average (SORA), which reflects borrowing costs, has been steadily declining, recently hovering around 2.10%, down several dozen basis points since the start of the year. As a result, major commercial banks have adjusted their fixed deposit (FD) rate policies. Product yields have not only fallen below the critical 3% threshold but in some cases have even dropped below 2%.
So, which bank currently offers the best deposit returns?
DBS/POSB offers the highest fixed deposit rate at 2.45% for a 12-month term, with a minimum deposit of SGD 1,000 to 19,999. $DBS(D05.SI)$
CIMB offers a 2.25% rate starting from 3 months, with a minimum of SGD 10,000.
Bank of China Singapore provides a maximum rate of 2.10% for 2 to 3 months, with a low minimum deposit of SGD 500.
Maybank offers a 2.15% rate for a 9-month term, available through online banking, mobile banking, or at a physical branch.
Hong Leong Finance provides 2.05% for at least 7 months, exclusively for online deposits.
$UOB(U11.SI)$ offers 2.00% for 6 months, but the rate drops to 1.70% for 10 months, with a minimum deposit of SGD 10,000.
RHB Bank provides a flat 2.00% rate for 3, 6, or 12 months, with a higher minimum requirement of SGD 20,000.
Besides interest rates, the free gifts banks offer with deposits are also a major consideration. For example, recently Ping An Bank in China offered a Labubu for a deposit of RMB 50,000, which went viral.
Labubu is especially appealing to younger consumers and Gen Z—it's rare and expensive. In the past, banks gave away rice, oil, or daily goods, and no one cared. Now, with Labubu, people are even promoting the banks for free.
But perhaps even more important is that fixed deposit rates in China have mostly fallen below 2%—some even below 1.5%. So really, how much difference does that small rate change make? If it were me, I'd probably deposit my money in $PING AN(02318)$ too.
What would you choose? Any better options?
What percentage of your asset portfolio is allocated to fixed deposits?
What would be considered a balanced proportion?
Have you ever planned how to allocate your assets across different types such as fixed deposits, stocks, mutual funds, REITs, and real estate?
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I guess I would put [USD] [USD] [USD] in dividend stocks as it beats the bank interest rate [Smile] [Smile] [Smile]
The 3-month Singapore Overnight Rate Average (SORA), which reflects borrowing costs, has been steadily declining, recently hovering around 2.10%, down several dozen basis points since the start of the year. As a result, major commercial banks have adjusted their fixed deposit (FD) rate policies. Product yields have not only fallen below the critical 3% threshold but in some cases have even dropped below 2%.
What would you choose? Any better options?
What percentage of your asset portfolio is allocated to fixed deposits?
What would be considered a balanced proportion?
Have you ever planned how to allocate your assets across different types such as fixed deposits, stocks, mutual funds, REITs, and real estate?
All valid comments will receive 5 Tiger
I allocate zero percentage of my portfolio to fixed deposits as the rates cannot beat inflation and they cannot beat the liquidity of cash in the bank. Liquidity is important to me so that I can buy stocks readily when there are dips.
A balanced portfolio would be dependent on one’s age and risk appetite. Personally, as I am still young, I put 80% in stocks and SREITS for the dividends, while the rest I hold as liquid cash.
Liquid cash is important to me as I am also looking for a property to invest in. When I find the suitable one, I would have to sell some of my stocks to buy that property. Hopefully, the rental will help with my retirement plans.
As we all know, property is expensive in Singapore. Once I get that property, I would likely be in 80% property, 10-15% in stock and SREITS, and the remainder as cash.
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我自己大概会把10%到15%的资产放在定期存款，主要是作为应急基金和短期资金停泊用途。这个比例不算高，但也足够我在需要“随时调动”的时候不慌。对于一般稳健型投资者，我觉得15%-25%是一个合理的定存比例，既不会拖累整体收益，也能保证流动性。
至于资产配置，我其实早有规划，采用的是比较经典的“核心-卫星”结构：
• 定存 + 货币市场基金：15%（抗风险）
• 股票：40%（主要投ETF和优质龙头股）
• REITs：15%（追求稳定现金流）
• 共同基金：20%（分散配置、全球视野）
• 房地产：10%（实体抗通胀资产）
这套组合不是一成不变，会根据市场利率、通胀、地缘风险适时调整。我始终相信：**没有最好的投资，只有最适合你的组合。**所以，定存不是没用，而是用得刚刚好才有价值。
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